This document discusses key elements in managing negotiations within relationships such as reputation, trust, and justice. It defines reputation and trust, explaining how they develop and can be built or damaged. The document also outlines recent research showing that trust tends to promote cooperation and information sharing in negotiations. Specific strategies are provided for increasing different types of trust, managing distrust, and repairing relationships.

1. 10-1Relationships, Trust and Reputation in Negotiation

2. Four Key Dimensions of Relationships

3. 10-3Key Elements in Managing Negotiations within RelationshipsReputationTrust

4. 10-4Key Elements in Managing Negotiations within RelationshipsReputationPerceptual and highly subjective in natureAn individual can have a number of different, even conflicting, reputationsInfluenced by an individual’s personal characteristics and accomplishments.Develops over time; once developed, is hard to change. Negative reputations are difficult to “repair”

5. 10-5Key Elements in Managing Negotiations within RelationshipsTrust“An individual’s belief in and willingness to act on the words, actions and decisions of another”Three things that contribute to trustIndividual’s chronic disposition toward trustSituation factors History of the relationship between the parties

6. Key Elements in Managing Negotiations within RelationshipsTwo different types of trust:Rules (Calculus-based trust)Individual will do what they say because they are rewarded for keeping their word or they fear the consequences of not doing what they sayRelationship (Identification-based trust)Identification with the other’s desires and intentions. The parties effectively understand and appreciate each other’s wants; mutual understanding is developed to the point that each can effectively act for the other.

7. 10-7Key Elements in Managing Negotiations within RelationshipsTrust (cont.)Trust is different from distrustTrust is considered to be confident positive expectations of another’s conductDistrust is defined as confident negative expectations of another’s conduct – i.e., we can confidently predict that some other people will act to take advantage of usTrust and distrust can co-exist in a relationship

8. Building a Win Win RelationshipTransform personal conflict into task conflict ( Interests vs. positions)Agree on a common goal or shared visionFind a shared problem or shared enemyFocus on the future

9. How to Build TrustSimilarity-attraction effect (same boat)Mere exposure (affinity)Physical presenceReciprocitySchmoozingFlatterySelf-disclosure

10. How to Avoid MistrustBreaches or defectionsMiscommunicationPoor pie expansionThreatsFocusing on the “bad apple”False representations

11. How to Fix a Breach of TrustArrange a personal meetingPut the focus on the relationshipApologize Let them ventDo not get defensiveAsk for clarifying informationTest your understandingFormulate a planThink about ways to prevent a future problemDo relationship check-up at a scheduled date

12. 10-12Actions To Manage Different Forms of Trust in NegotiationsHow to increase calculus-based trust Create and meet the other party's expectationsStress the benefits of creating mutual trustEstablish credibility; make sure statements are honest and accurateKeep promises; follow through on commitmentsDevelop a good reputationHow to increase identification-based trust Develop similar interestsDevelop similar goals and objectivesAct and respond like the otherStand for the same principles, values and ideals©2006 The McGraw-Hill Companies, Inc., All Rights ReservedMcGraw-Hill/Irwin

13. Actions To Manage Different Forms of Trust in NegotiationsHow to manage calculus-based distrustMonitor the other party’s actionsPrepare formal agreementsBuild in plans for “inspecting” and verifying commitmentsBe vigilant of the other’s actions; monitor personal boundariesHow to manage identification-based distrustExpect disagreementsAssume that the other party will exploit or take advantage of you; monitor your boundaries regularlyVerify information, commitments and promises of the other partyMinimize interdependence and self-disclosure“The best offense is a good defense”

14. Recent Research on Trust and NegotiationGood news about trust and negotiation behavior:Many people approach a new relationship with an unknown other party with remarkably high levels of trustTrust tends to cue cooperative behaviorIndividual motives also shape trust and expectations of the other’s behaviorGreater expectations of trust between negotiators leads to greater information sharingGreater information sharing enhances effectiveness in achieving a good negotiation outcome

15. Recent Research on Trust and NegotiationDid you know:Trust increases the likelihood that negotiation will proceed on a favorable course over the life of a negotiationFace-to-face negotiation encourages greater trust development than negotiation onlineNegotiators who are representing other’s interests, rather than their own interests, tend to behave in a less trusting way

16. 10-16Key Elements in Managing Negotiations within RelationshipsJustice Can take several forms:Distributive justiceThe distribution of outcomesProcedural justiceThe process of determining outcomesInteractional justiceHow parties treat each other in one-to-one relationshipsSystemic justiceHow organizations appear to treat groups of individuals©2006 The McGraw-Hill Companies, Inc., All Rights ReservedMcGraw-Hill/Irwin

17. Repairing a Relationship10-17Diagnostic steps in beginning to work on improving a relationship:What might be causing any present misunderstanding, and what can I do to understand it better?What might be causing a lack of trust, and what can I do to begin to repair trust that might have been broken?

18. 10-18Repairing a RelationshipDiagnostic steps (cont.):What might be causing one or both of us to feel coerced, and what can I do to put the focus on persuasion rather than coercion?What might be causing one or both of us to feel disrespected, and what can I do to demonstrate acceptance and respect?

19. 10-19Repairing a RelationshipDiagnostic steps (cont.):What might be causing one or both of us to get upset, and what can I do to balance emotion and reason?©2006 The McGraw-Hill Companies, Inc., All Rights ReservedMcGraw-Hill/Irwin